Sahara locks horns with Jet
Jet Airways and Sahara India Commercial Corporation Ltd, the erstwhile owners of Sahara Airlines, are locked in a dispute over payment towards the acquisition of the Subroto Roy controlled airline by Jet in April 2007.Updated: Mar 31, 2009 22:12 IST
Jet Airways and Sahara India Commercial Corporation Ltd, the erstwhile owners of Sahara Airlines, are locked in a dispute over payment towards the acquisition of the Subroto Roy controlled airline by Jet in April 2007.
According to a PTI report, the Bombay High Court on Tuesday stayed further attachment of Jet Airways’ property, after Sahara initiated attachment of Jet's movable property earlier in the day.
Justice S C Dharmadhikari, in his order on a Jet plea against this, said attachment till now would remain unaffected, but there shall be no further attachment.
The Judge also asked Jet to file an undertaking by April 3 that it will not create third party rights in respect of its movable property — including some 40 aircraft — till further orders.
The dispute centres around deductions made by Jet Airways towards income tax from amounts payable by it to Sahara.
The Income Tax department raised a demand on Sahara Airlines. Jet adjusted some amount towards tax payment from instalments it is supposed to pay Sahara.
Jet was to pay Rs 550 crore to Sahara in four equal installments starting March, 2008 to March, 2011. Since Jet made deductions in the first and second installments, paid in March 2008 and 2009, upon which Sahara moved court.
Jet refused to comment as the matter is sub-judice.
First Published: Mar 31, 2009 22:11 IST